Brian Armstrong Warns Stablecoin Interest Ban Could Hand Advantage To China’s CBDC

• Coinbase CEO Brian Armstrong stated that U.S. stablecoins must remain globally competitive as lawmakers debate the GENIUS Act.
• He was responding to Coinbase executive Faryar Shirzad’s warning that China's digital yuan plans could give non-US stablecoins an advantage.
• Ripple's RLUSD has surpassed $1 billion in market capitalization, indicating growing institutional demand.

Coinbase (COIN) CEO Brian Armstrong said on Tuesday that U.S. stablecoins must remain competitive globally.

Replying to Coinbase Chief Policy Officer Faryar Shirzad on X, CEO Armstrong said, “stablecoins must remain competitive on a global stage,” as lawmakers weigh how tightly to regulate dollar-backed digital tokens.

Armstrong’s comment followed an earlier discussion started by Shirzad where he said the strategic stakes of the U.S. remain high under the GENIUS Act. He argued that U.S. lawmakers should view stablecoin policy through a global competitiveness lens, writing that the GENIUS Act was designed to ensure “U.S. dollar stablecoins issued under U.S. rules would be the primary settlement instrument of the future.” 

He warned that missteps in Senate negotiations could give “non-U.S. stablecoins a critical competitive advantage.” Shirzad reacted to the “sobering and timely announcement” where the People’s Bank of China said that it plans to pay interest on holdings of the digital yuan and would hold it not in parallel to cash but deposits. 

Coinbase (COIN) closed at $231.60 on Tuesday, down 0.93% on Wednesday after hours. On Stocktwits, retail sentiment around COIN was in the 'bearish’ zone, with ‘low’ chatter levels, over the past day.  

Stablecoin Growth And Global Competition

Dollar-backed stablecoins have become a core part of crypto market infrastructure. Earlier this week, Ripple said RLUSD crossed a $1 billion market capitalization in November and is being used for institutional settlement and tokenized fund liquidity by firms including BlackRock and VanEck. The company said the stablecoin is also used in cross-border payment workflows with institutions such as Mastercard and Singapore-based DBS.

RLUSD has traded consistently near its $1 peg over the past year. On Stocktwits, retail sentiment around it continued in ‘bearish’ territory, with chatter changing from ‘extremely low’ to ‘low’ levels over the past day. 

Read also: Florida Plans To Add Crypto Reserve – Following Texas, New Hampshire, And Arizona’s Lead

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